Banner for LabNotes
From Lab Notes
Contact Information
Forest Products Laboratory
One Gifford Pinchot Drive
Madison, WI 53726-2398
Phone: (608) 231-9200
Fax: (608) 231-9592
Email

 

You are here: FPL Home  / Information Products & Services  / Publications

Requested Product

Title: Financial feasibility of a log sort yard handling small-diameter logs

Source: In: Proceedings of 2009 COFE: Environmentally Sound Forest Operations 32nd Annual Meeting of the Council on Forest Engineering June 15-18, 2009 North Tahoe Conference Center, Kings Beach, California Compiled by Bruce Hartsough and Bryce Stokes; 2009

Author(s)Han, Han-Sup; Bilek, Ted; Dramm, Rusty; Loeffler, Dan; Calkin, David

Publication Year: 2009  View PDF »

Category: Conference Proceedings
Associated Research Project(s):   FPL-4851-6A  FPL-4851-6A

Abstract: The value of the trees removed in fuel reduction thinning and restoration treatments could be enhanced if the wood were effectively evaluated and sorted for quality and highest value before delivery to the next manufacturing destination. However, past studies indicated that costs for running a log sort yard for small-diameter logs could outweigh the revenue generated by sorting and pre-processing those logs. This study was to evaluate the financial feasibility of running a log sort yard that serves as a log market to buy and sell small-diameter logs in western Montana. We modeled a log sort yard to process and sort small-diameter logs to seven products (sawlogs, house logs, stud logs, peeler logs, post & pole, pulpwood, and hog fuel). The financial feasibility of a log sort yard would largely depend on prices that the yard pays and product revenues that the yard receives from selling sorted and processed logs. The delivered log input costs represent 78.1% of the total sales revenue while the yard’s operating costs account for 17.7% of the revenue. The log sort yard operating cost was $3.85/piece or $71.46/MBF. Species and product types were important factors determining gross revenues. Douglas-fir would make the biggest contribution to the yard’s gross margin since this species both represents the largest volume (45% of the log) into the log sort yard and produces high value products (house logs and veneer logs).

Keywords: Forest products, economic aspects, forest products industry, lumber, planning, timber, grading, marketing, Montana, feasibility studies, value added, cost effectiveness, forest thinning, prices, market surveys, Douglas fir

Publication Review Process: Non-Refereed (Other)

File size: 59 kb(s)

Date posted: 10/06/2010
RITS Product ID: 31267
Current FPL Scientist associated with this product
Bilek, Ted
Economist
  

Additional items that might interest you
View the video celebrating FPL's 100 years of public service in 2010, from the producers of the Greatest Good....view

Research Highlights from FPL....view

Termite Eradication: A search for the Holy Grail.... view

Moisture Management in Residential Construction Series videos...view

Wood Floor Systems in Residential Construction Series videos....view
- FPL's Mission and Strategic Plan -

FPL's mission is to identify and conduct innovative wood and fiber utilization research that contributes to conservation and productivity of the forest resource, thereby sustaining forests, the economy, and quality of life. ... ..more »

- FPL Research Emphasis Areas -
Advanced Composites

As an integral part of the FPL mission, we improve the long-term sustainability of our Nation's forests by creating valuable composite products from biobased materials ... ..more »


Advanced Structures

The FPL has been in the forefront of wood-frame housing research since 1910 and has long been recognized as a world leader in such housing-related areas as engineered wood ... ..more »


Forest Biorefinery

We all know the compelling reasons that the United States needs to reduce its dependence on fossil fuels. Historically, the greatest increases in energy demand have been for transportation fuels ... ..more »


Nanotechnology

A leader in wood products research for over a century, the FPL is positioning itself to become the lead Federal research facility for the application of nanotechnology in forest products ... more »


Woody Biomass Utilization

Forests in the United States contain a substantial amount of small-diameter, overstocked, and underutilized material.FPL research projects are exploring the potential of the small-diameter ... ..more »